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Instead, Rutter and his team set about exploring technologies that could offer practical applications of distributed ledger technology to the financial markets. Distributed ledgers work with so-called smart contracts, converting the terms and obligations of financial agreements into code. Rutter quickly saw that permissionless blockchains such as bitcoin – in which every node on a network sees and receives all of the data distributed across it – would be inappropriate for the financial markets, from both a processing workload and information security point of view.